7.0. EDSR 08-12-1996 - Laserfiche WebLink

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CITY OF ELK RIVER REQUEST FOR FINANCING JAMES I. TAYLOR and JIMICHAELEEN MUFFLERS, INC. PROJECT OVERVIEW • Loan purpose and amount of request Jimichaeleen Mufflers, Inc. (dba. Midas)is a Midas Muffler franchisee currently operating stores located in Fridley, Maple Grove and two in Coon Rapids. The first franchise started in 1979 when the initial Coon Rapids location opened. The business began to grow and needed to expand to service a rapidly growing market. The Fridley location opened in 1984 and the Maple Grove location opened in 1989. A second Coon Rapids store opened in 1992. The northwest metropolitan area has continued to grow with a substantial amount of this growth occurring in or near the City of Elk River. The company is currently planning to open a fifth store in this community and is seeking financing to accomplish the project. The plan is to obtain financing through the SBA 504 Loan Program. This program requires a first mortgage lender to provide 50% of the project financing. • This amount is complemented by financing provided by a certified development company in the form of a 40% second mortgage. The loan from the certified development company is fully guaranteed by the Small Business Administration. The company is currently negotiating with lenders to provide first mortgage financing in the amount of $339,500. Construction financing for the entire project is also needed. The project is estimated to cost approximately $674,000. In addition, the company will require financing for inventory and other non eligible SBA 504 project costs in the amount of$60,000 from a lender. Financing provided by the City of Elk River RLF will balance out the remainder of the project costs. Detail on the anticipated sources and uses of funds is provided below. PROJECT COSTS / USES OF FUNDS Land Acquisition $210,000 Land Improvements $53,760 New Construction $365,000 Soft Costs and Contingencies $35.900 Subtotal $664,660 SBA 504 Debenture Pricing $9.200 Total 504 Eligible Project Costs $673,860 Franchise Fee $20,000 Inventory $30,000 Furniture/Fixtures/Equipment $60.000 Total Project Costs $783,860 Advance-Resources for Development,Inc.